Category: Tax planning

In income tax parlance, individuals who are permanent residents of India are known as resident individuals. It is the duty of all such citizens to pay taxes on the income that they earn and file income tax return each year. However, it is the non-residents or those who are not ordinarily resident in India, who … Continue reading What every Non Resident Indian needs to know on their Tax Implications in India

Along with the rest of the country, the salaried class waits for the annual budget to be announced each year. They look up to the government to provide them with higher take home pay by way of increase in tax free income and lowering of tax slabs. They also look for some relief through savings … Continue reading All you wanted to know about Tax Exemption on HRA

The income that NRI earn abroad is not taxable in India. Nevertheless,some NRIs also have an earning in their aborigine country, India in the form of interest from deposits, property rent, etc. This income has a basic limit of exemption, which is Rs2 lakhs. If the NRI earnings from such native sources cross the fixed … Continue reading 5 Things NRIs need to know when filing Income Tax Returns in India

The word ‘tax’ troubles every salaried individual and business person, equally. Nobody likes when a portion of their income gets deducted in the form of tax. Therefore, individuals that fall in the tax bracket, choose certain tax-saving schemes like PPF, Mutual Funds, and tax-saving FDs, life insurance, Mediclaim policy or property investment. The deduction available … Continue reading 5 Mistakes You Should Avoid in Selecting Tax Saving Investments

One of our distinguished Finance Ministers had made this famous statement in one of his speeches, “Even God would not like to pay taxes!” reinforcing the general dislike of tax payers in paying taxes. However, our lawmakers are human, and they understand this general aversion of people to pay taxes. That may be one of … Continue reading How to get exemption from paying Capital Gain Tax?

The Query Mr Chaudhury has just sold his old ancestral house for a lump sum consideration of Rs.20,00,000. He has now set his eyes on a new apartment which is due for possession within the next two years. Mr. Chaudhury is in a dilemma, he is aware that the amount he has received is a … Continue reading What every investor needs to know about Capital Gains Account Scheme

Employee Stock Option Plans (ESOPs) give employees a right to buy company shares at a pre-decided price and it forms part of taxable income. Most senior employees working with bluechip companies get ESOPs regularly and they have to pay tax on their ESOPs. When an Indian employee moves to the US to work there, he … Continue reading An overview of taxation on India ESOPs for US based NRIs

Campus placement is fashionable today. Students feel very proud and happy to share with others about their pay package. They think higher the pay package, higher will be their monthly salary. They just divide their package by 12 and calculate the monthly cash inflow and build their castle on it. These castles prove to be … Continue reading The Surprising Truth about CTC which Your Employer won’t Tell You

If you are a Fixed Deposits, investor, you are not very happy when the tax is deducted at source by the bank from the interest paid to you. You must have thought in what way you can avoid or pay lower taxes in your FDs. Well, we may tell how you can do it legally!!! … Continue reading How to Avoid TDS in Fixed Deposits?

Once, our venerable Finance Minister, Mr. M Chidambaram, has said, “Left to God, even he will not like to pay Income Tax”. Though as a responsible citizen of our country, we should pay our income taxes on time and should not avoid paying it. However, if the Income Tax Act, 1961 provides legal opportunities to … Continue reading How to savemore tax by Creating a HUF?